IFC and South Africa
Partners in Private Sector Development
OVERVIEW
IFC, a member of the World Bank, is the largest global
development institution focused on the private sector inemerging markets. Working in more than 100 countries, IFC
committed a record US$43 billion in own-account investments
and mobilization from third parties to private companies andfinancial institutions in developing countries in FY23.

IFC AND SOUTH AFRICA
The Republic of South Africa(RSA) – IFC Technical Assistance Trust Fund South Africa was established in 2003,
representing the first dedicated South Africa - IFC trust fund to support technical assistance in Africa.
Contributions of US$5.56 million from the Department of Trade, Industry and Competition (DTIC) supported 19
projects in sub-SaharanAfricaacrossadiverse

rangeofIFC

industrygroupsincluding

Health,Telecommunications, Ports and Education.

IFC’s Investment and Advisory Portfolio in South Africa
As of September 2023, IFC’s Investment and Advisory portfolio in South Africa amounted to US$3.06 billion and US$28.8 million
respectively (data from 2004-2023). South African private sector companies have benefited from co-investments with IFC,
while making notable contributions to development.

*The World Bank Group fiscal year runs from July 1 to June 30 of the following calendar year.

Examples of Successful Cooperation
Supporting Green Residential Developments in South Africa
In December 2021, IFC anchored a ZAR1.08 billion (US$65 million) privately placed seniorunsecured green bond for Nedbank South Africa. IFC’s investment totaled ZAR500 million (US$27.6million). The bond is fully dedicated to expanding Nedbank’s nascent portfolio of EDGE-certified
green residential housing development loans in South Africa. The project benefits from EDGE
Advisory Services support both the Bank and the developers it finances with bond proceeds.
The project also benefits from a performance-based incentive provided by the UK’s Market
Accelerator for Green Construction (MAGC) program, which aims to offset some of the construction
costs of end-beneficiaries to scale up green buildings.
The EDGE Program was launched in South Africa in 2015. Since then, the program has grown fromtwopilot
projects
tomorethan
3.3
square meters,
including preliminary and postconstruction green building certifications.

Improving Education and Livelihoods in South Africa
In 2022, IFC committed a US$100 million sustainability-linked loan
support community development in rural communities close tooperations across South Africa.

to Anglo American toAnglo American's mining

The financing is helping improve the quality of education for more than 73,000 students in over 100
primary and secondary public schools by training educators, practitioners, and school management
teams, and upgrading basic school infrastructure and equipment, including providing WiFi
and computers.
In addition,
itwillpromotejob
creation
byproviding mentorship,
capacity building, skills development, and access to finance to small businesses in the mining
value chain and in other sectors, with a focus on women and young people.
The financing was the first sustainability linked loan in the mining sector in Africa and the first
one globally in mining that focuses exclusively on social KPIs.

Developing Affordable Residential Housing in South Africa
In 2022, IFC committed to invest ZAR325 million (US$20.2 million) via a green loan to AlleyRoads Holdings(Pty) Ltd to develop 1,061 green affordable housing units for rent across three housing projects
in the Greater Johannesburg region (South Africa). The units developed are aimed at lowerto-middle income households with an average annual salary of ZAR238,000 (US$15,000).
The Project will help reduce the housing gap in Johannesburg's affordable housing market, which faces
a significant support economic activity by creating jobs.

Boosting Legal Homeownership for Low-Income Households in South Africa
Property is the most significant asset for most low-income households in South Africa. But without a title
deed, it’s almost impossible to borrow against the value of the land or house. A lack of deed also hampers
the ability to participate fully in the formal property market, including selling, tax payments and valuations.
Home ownership is one of the most important ways for people to build and transfer to the next
generation. In South Africa, IFC is helping put more people on that path, which, in addition to improved
access to finance, sometimes requires resolving complex legal issues.
South Africa’s government has built more than a million subsidized houses for its low-income populations inrecent decades. But in many cases, when people received the houses, title deeds were not transferred, leaving
occupants unable to legally sell or borrow against the property. This has kept an estimated 242 billion rand
(approximately $12 billion) in assets out of the hands of the country’s poorest households. IFC advisory
services has helped two municipalities near Durban (KwaDukuza and Mandeni municipalities) locate therightful owners and transfer full ownership. The IFC led pilot program helped more than 300 low-income
South African seniors acquire title deeds for their land in the iLembe district.
The innovative program works by leveraging South Africa’s Broad-Based Black Economic
Empowerment (B-BBEE) socio-economic development and by engaging law firms to offer pro-bonoproperty conveyancing services to low-income earners.

CONTACTS
Johannesburg

Johannesburg

Southern Africa (Eswatini, Lesotho, Namibia,Operations Officer (Africa, Middle East, Central

Adamou Labara, Country Manager

South Africa, and Zimbabwe)
E-mail:alabara@ifc.org /Tel: +27 11 731 3000
September 2023

Susanne Kinyua, Partnerships Principal

Asia, and Turkey)

E-mail:askinyua@ifc.org /Tel: +1 202 929 7145